Vernon Pointers Corporation expects to begin operations on January 1, 2019; it will operate as a specialty sales company that sells laser pointers over the Internet. Vernon expects sales in January 2019 to total $250,000 and to increase 20 percent per month in February and March. All sales are on account. Vernon expects to collect 68 percent of accounts receivable in the month of sale, 25 percent in the month following the sale, and 7 percent in the second month following the sale.

Required

Prepare a sales budget for the first quarter of 2019.

Determine the amount of sales revenue Vernon will report on the first 2019 quarterly pro forma income statement.

Prepare a cash receipts schedule for the first quarter of 2019.

Determine the amount of accounts receivable as of March 31, 2019.